Implementing organizational performance measurement systems: measures and success strategies

Abstract

PurposeThis study assesses performance measurement (PM) system implementation efforts across various organizational contexts and investigates which factors are critical to achieving implementation success (IS).Design/methodology/approachAn empirical field study was conducted to refine a framework of PM system IS that consists of 5 dimensions of success and 29 factors. A survey questionnaire was used to investigate actual organizational practice and exploratory factor analysis was conducted to refine constructs corresponding to potential factors and dimensions of IS. The resulting variables were then investigated using multiple regression analysis to identify critical success factors for implementing PM systems.FindingsThe survey was completed by representatives from 124 organizations and the exploratory factor analysis results indicated that there are three underlying dimensions of IS (i.e. Use of the System, PM System Performance, and Improved Results and Processes) and 12 factors. Of the factors, nine can be considered critical success factors having a significant relationship with at least one dimension of IS: Leader Support, Design and Implementation Approach, Reward System Alignment, Organizational Acceptance, Organizational Culture and Climate, Easy to Define Environment, IT Infrastructure Capabilities, PM System Design Quality, and PM Participation and Training.Originality/valueThe results show that there are distinct dimensions of IS and, although some factors are associated with all dimensions, most are more closely related to only one dimension. This suggests that different strategies should be utilized based on the types of challenges experienced during implementation.